Oil company Phillips 66 said it will close Los Angeles-area refineries

LOS ANGELES (AP) – Oil company Phillips 66 announced Wednesday it plans to close a Los Angeles-area refinery by the end of 2025, citing market concerns.

According to the state's Energy Commission, refineries account for about 8% of California's refining capacity. The company said it will work in the state.

“With the long-term sustainability of our Los Angeles refinery uncertain and impacted by market dynamics, we are working with leading land development companies to evaluate the future use of our unique and strategically located properties near the Port of Los Angeles,” CEO Mark Lasheer said in a statement. “Philips 66 is committed to serving California and will continue to take the necessary steps to meet our commercial and customer needs.”

The closure will affect 600 employees and 300 contractors who help operate the refinery, the company said in a news release. The refinery consists of two facilities that were built more than a century ago.

The announcement comes days after Democratic Gov. Gavin Newsom A law signed Aimed at curbing the rise in gas prices at the pump. The law authorizes energy regulators to require refineries to maintain a certain level of fuel. The goal is to avoid sudden spikes in gas prices when refineries go offline for maintenance

Philips 66's decision to close is not related to the new law, the company said. It said it supports the state's efforts to keep certain levels of fuel to meet consumer demand.

The company also operates a refinery near San Francisco that accounts for about 5% of California's refining capacity, according to the state Energy Commission. Phillips 66 Santa Maria, a refinery located about 62 miles (100 kilometers) northwest of Santa Barbara, closed in 2023 after the company announced plans to convert its San Francisco-area site into “one of the largest renewable energy facilities in the world.”

Newsom pressured lawmakers to pass oil and gas regulations. He called the state legislature into a special session in 2022 to pass legislation on the goal Crack down on oil companies To make too much money. Democrats often tout California's status as a climate leader. The state has passed policies in recent years to stop new fossil fuel-powered sales mow the lawn, the car, Big rigs And the train.

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While Los Angeles-area refineries account for about 8% of California's refining capacity, it does not produce nearly as much of the state's crude oil. It corrected the same error for San Francisco-area refineries.